Mission Valley Bancorp Reports Third Quarter Results

Core Insights - Mission Valley Bancorp reported a net income of $2.1 million, or $0.62 per diluted share, for Q3 2025, an increase from $1.4 million, or $0.42 per diluted share, in Q3 2024 [1][2] - For the nine months ending September 30, 2025, net income was $4.9 million, or $1.45 per diluted share, compared to $5.1 million, or $1.53 per diluted share, for the same period in 2024 [1] Financial Performance - Net Interest Income for Q3 2025 was $7.8 million, up by $0.9 million, or 13.04%, from Q3 2024 [7] - Net Interest Margin improved to 4.54% in Q3 2025 from 4.49% in Q3 2024 [7] - Non-Interest Income rose to $2.8 million, an increase of $0.7 million, or 33.33%, compared to Q3 2024 [7] - The company sold $17.9 million in Small Business Administration (SBA) loans, resulting in a gain of $0.9 million, compared to $9.0 million in SBA loans sold and a gain of $0.5 million in Q3 2024 [7] Balance Sheet Highlights - Total Assets reached $715.0 million as of September 30, 2025, an increase of $37.7 million, or 5.57%, from December 31, 2024 [7] - Gross Loans amounted to $577.8 million, up by $30.8 million, or 5.63%, compared to December 31, 2024 [7] - Total Deposits were $564.3 million, an increase of $13.0 million, or 2.36%, from December 31, 2024 [7] - Brokered Deposits decreased to $11.0 million, down by $48.9 million, or 81.64%, compared to December 31, 2024 [7] Asset Quality - The company reported $60 thousand in net recoveries from previously charged-off loans in Q3 2025, compared to $0.1 million in net charge-offs in Q3 2024 [7] - Past Due Loans increased to $8.6 million as of September 30, 2025, compared to $5.3 million as of December 31, 2024 [7] - Classified Loans decreased to $25.4 million as of September 30, 2025, from $26.4 million as of December 31, 2024 [7] - Non-Accrual Loans decreased to $8.9 million as of September 30, 2025, from $10.2 million as of December 31, 2024 [7] Capital and Liquidity - The Allowance for Credit Losses was $8.5 million, or 1.47% of Gross Loans, as of September 30, 2025, compared to $8.1 million, or 1.48% of Gross Loans, as of December 31, 2024 [7] - The capital position is strong, with a Common Equity Tier 1 Capital Ratio of 10.47%, Tier 1 Capital Ratio of 11.41%, Total Risk-Based Capital Ratio of 12.66%, and Leverage Ratio of 10.08% [7] - Available borrowing capacity was $194.9 million as of September 30, 2025, a decrease of $13.8 million, or 6.61%, compared to December 31, 2024 [7] - Unpledged available-for-sale investment securities totaled $45.6 million as of September 30, 2025 [7] Strategic Developments - The opening of Mission Valley Bank's fourth full-service branch in Arcadia on September 8, 2025, is seen as a strategic fit for geographic expansion, driven by existing customers and strong deposit growth opportunities [2]